Theory And Practice Of The Minimum Wage System In China(2008-2012)

The financial crisis caused serious influence to economy of China in2008，andvarious social contradictions unceasingly highlighting. Some problems existedpersistently and affected the stability of social development such as the imbalance ofincome distribution and higher unemployment problem. The minimum wage system is akind of administrative means which state intervene wage structure adjustment, itspurpose is to guard the legitimate interest which the laborer obtain labor remuneration,ensure laborer and their families’ basic living needs especially low-income workers. Theimplementation of minimum wage system can ease those social problems to a certainextent, which to contribute to promoting economic development and social stability. Inthis context, the research about the effect of minimum wage system will have a greatsignificance meaning to the improvement of system of minimum wage.The research object is minimum wage system and the research’s background isbased on the post-crisis era after the economic crisis in2008.In this paper, the practiceeffect of minimum wage system act as breakthrough point, to summarize and evaluatethat existing standpoint about minimum wage, then combing the views of experts andscholars to provide theoretical basis for the study of the paper. Discussing the actuality ofminimum wage implementation in our country on the basis of theoretical analysis, andthen to analyze the effect of minimum wage system through quantitative and qualitativemethods, to further analyze the problem about the implementation process.The research based on the government statistics from all over our country in2008-2012, to analyze income distribution effect and employment effect of minimumwage system implementation in China by ensemble canonical correlation. It turned outthat the implementation of the minimum wage system in our country has played a positive role of narrowing the income distribution gap to a certain degree, and theadjustment of the minimum wage has a positive correlation with employment. But thatminimum wage standard is much lower than world level, which failed to guardlow-income workers. The minimum wage is also need to make further adjustments catchup with the world level. In the meantime, we can put forward the suggestions ofperfecting our country’s minimum wage system from three aspects of system,implementation and regulation, through analyzing overseas experience and combiningthe existing problems.